Fractional Trading in Singapore: A More Accessible Way to Buy US Stocks

September 30, 2025

For many Singapore-based investors, the US stock market still feels like a “big leagues only” arena – full of names you recognise (e.g. Apple, Microsoft, Tesla) but with share prices that can easily run into hundreds of US dollars per share. This high price per share has historically discouraged new investors from gaining exposure to leading US companies and popular ETFs.

That’s where fractional shares comes in. Instead of saving up for one full share, you can buy a slice of a stock or ETF based on the dollar amount you want to invest. From as little as US$1, platforms like Syfe Brokerage and others let you access thousands of US-listed securities in bite-sized amounts, while staying within your budget.

This guide is written for the Singaporean prospective investor who wants to understand what fractional shares are. By the end, you’ll know the pros and cons, how they fit into your investing plan, and the practical steps to use fractional shares to build a diversified portfolio.

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Investing in your favorite US stocks and ETFs is no longer limited by high price barriers. With fractional trading on Syfe, you decide how much you want to invest — even if it’s less than the price of a single share.

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Table of Content

What Are Fractional Shares?
Why Fractional Shares Matter for Singapore Investors
How Fractional Shares Work in Singapore
Fractional Shares Trading vs SGX Odd-Lot Trading
Where to Access Fractional Trading in Singapore
How Syfe Brokerage Supports Fractional Trading
Strategies: How to Use Fractional Shares in Your Portfolio
Risks and Limitations of Fractional Shares
Quick Takeaways
Are Fractional Shares Right for You?
Frequently Asked Questions (FAQs)
Resources & Further Reading

What Are Fractional Shares?

At its core, a fractional share is exactly what it sounds like: a piece of a share, representing less than one full unit of a listed stock or ETF.

Instead of buying 1 share of Company A at US$100, you could invest US$25 and own 0.25 shares.
If the stock price rises to US$120, your 0.25 share is now worth US$30.
If it falls to US$80, it’s worth US$20.

Economically, fractional shares behave like whole shares:

You participate in price movements in proportion to your fraction.
You typically receive dividends pro-rated to the fraction you own (e.g. 0.25 of the full dividend).
You can buy or sell via your broker’s app, often using dollar-based orders.

Fractional shares have historically existed in niche contexts (e.g. from stock splits or dividend reinvestment plans), but broad fractional share trading has become more common as:

Brokers have invested in better order-routing and back-office systems.
Competition has pushed platforms to make global markets more accessible.
Retail investors in markets like Singapore are demanding lower entry barriers to US equities and ETFs.

Why Fractional Shares Matter for Singapore Investors

For Singaporean investors, fractional shares directly address several practical pain points when investing overseas.

1. Lower barrier to high-priced US stocks

Many well-known US companies trade at prices where a single share can cost a few hundred US dollars. For a new investor putting aside, say, S$300–S$500 a month, that’s a big chunk of capital into just one stock.

With fractional shares US SG access, you can:

Start with US$50–US$100 instead of waiting to save US$500+ for one share.
Gain exposure to popular companies (Apple, Amazon, Nvidia) or US ETFs without over-concentrating in a single counter.

This makes fractional trading a practical way for Singapore investors to tap US growth while keeping ticket sizes small.

2. Easier diversification with small amounts

Diversification is one of the core principles of long-term investing. Instead of buying 1–2 expensive names, fractional trading allows you to spread the same capital across more positions.

For example, with US$1,000, you could:

Invest US$200 each into Apple, Amazon, Microsoft and Tesla.
Put the remaining US$200 into a broad ETF like the S&P 500 (e.g. VOO or SPY).

Even if each ETF unit costs hundreds of dollars, fractional trading lets you hold small slices of each. This improves diversification compared to owning only one or two full shares.

3. Smoother dollar-cost averaging (DCA)

Dollar-cost averaging (DCA) means investing a fixed amount at regular intervals, regardless of market conditions. Over time, you buy more units when prices are lower and fewer when prices are higher.

With fractional shares Singapore:

You can invest the full monthly amount (e.g. S$300) instead of leaving odd dollars idle.
Your broker simply calculates the fraction you can afford for each stock or ETF.
This makes it easier to run a DCA plan into US markets without worrying about exact share prices.

4. A gentler way to learn

If you’re new to investing, fractional shares allow you to:

Test ideas with small, manageable sums (e.g. US$20–US$50).
Get used to placing orders, tracking performance and sitting through volatility.
Avoid over-committing to any single stock at the start.

Used thoughtfully, fractional shares can be the bridge to help investors build a serious long-term portfolio”.

How Fractional Shares Work in Singapore

On the surface, fractional trading looks simple: you enter a dollar amount, tap “Buy”, and see a decimal number of shares in your portfolio. Behind the scenes, a few mechanics matter.

Dollar-based vs share-based orders

With fractional trading, orders are usually dollar-based:

Instead of “Buy 2 shares of MSFT”, you might place “Invest US$100 in MSFT”.
The broker then calculates the quantity (e.g. 0.4215 shares) based on the executable price at the time.

Most brokers in Singapore support market orders for fractional trades; some also support limit orders, though order types can be more restricted than for whole shares.

What markets and products can you trade?

In practice, fractional shares in SG are currently most common for:

US-listed stocks and ETFs, including many S&P 500 names and large ETFs.

But, availability varies by broker:

Not every stock or ETF is eligible.
Some brokers restrict fractional trading to curated lists.
Minimum notional amounts can range from US$1 (Syfe, many neobrokers) to US$5 (DBS Vickers).

So when you’re evaluating how fractional shares work in SG, always check:

Which tickers are eligible.
The minimum order value.
Supported order types (market, limit, time-in-force, etc.).

Fractional Share Trading vs SGX Odd-Lot Trading

It’s important to distinguish fractional shares from SGX odd-lots:

Odd-lot trading (SGX)
- Means buying fewer than the standard board lot size (e.g. 10 or 100 shares), but each is still a whole share.
- For example, buying 7 shares when the board lot is 10.
Fractional shares (US)
- Means holding decimal shares like 0.38 of a share.
- Common today for US stocks and ETFs across several Singapore brokers.

Platforms like Syfe Brokerage support both:

Fractional shares for most US stocks and ETFs from about US$1 per order;
Odd-lot trading for SGX so you can buy smaller quantities of local stocks.

Together, this gives you a complete small-ticket investing toolkit across US and Singapore markets.

Where to Access Fractional Trading in Singapore

Not every brokerage offers fractional trading, but more platforms are beginning to include it. Typically, it is available for US-listed stocks and ETFs, since that’s where demand is highest.

How to choose the right fractional share broker

When evaluating a platform, consider:

a) Markets and instruments

Is there a clear list of fractional-eligible US securities, and does it cover the names you care about?

b) Fees, FX, and minimums

US brokerage fees (after any free-trade promotions).
Any platform, custody or inactivity fees.
Minimum order size (US$1 vs US$5 vs higher).

c) Regulation and safety

Is the platform licensed by MAS under a Capital Markets Services (CMS) licence?
How are your cash and securities held and segregated?
For US markets, is there SIPC coverage via a US sub-custodian?

d) User experience and tools

App/interface quality and reliability.
Research tools, charting, screeners and portfolio view.
Funding options and FX conversion convenience.

e) Fit with your broader plan

Is it easy to automate DCA or set up recurring fractional buys?

Even if price is your first filter, think about whether the platform supports your long-term investing habits, not just your first few trades.

How Syfe Brokerage Supports Fractional Trading

Syfe Brokerage is one example of a MAS-regulated brokerage offering fractional shares designed for small, recurring investments in the US markets. With Syfe Brokerage:

You can trade over 11,000 US-listed stocks and ETFs..
Fractional trading is available only for US stocks and ETFs, not for SGX or HKEX counters.
You can start from as little as US$1 per order, deciding the dollar amount instead of the number of shares.
Crucially, Syfe does not charge additional fees for fractional trades – they’re treated the same as whole-share trades from a pricing perspective. Additionally, you can enjoy unlimited free U.S. trades for your first 3 months, plus at least 2 free U.S. trades monthly thereafter.

Making your first fractional trade on Syfe

Once you’ve signed up for a Syfe Brokerage account, simply follow the steps below to make your first fractional trade.

Download the Syfe mobile app and sign up for a Syfe Brokerage account
Add funds to your Syfe Brokerage.
Determine what US stock or ETF you want to invest in, and how much money you want to invest
Tap “Buy” and select “Buy in dollars (Market)” as your order type
Enter the amount you want to invest
Slide “Buy” to complete your trade

For those who prefer a more hands-off approach, Syfe Core portfolios provide globally diversified, professionally managed solutions that save you the hassle of choosing and monitoring individual stocks.

Learn more about Syfe Brokerage for fractional trading, or explore Syfe Core portfolios if you prefer an automated approach to investing.

Strategies: How to Use Fractional Shares in Your Portfolio

Once you grasp the basics of how fractional shares work in SG, the next question is: how do you use them well?

1. Starting small with expensive US names

If you’ve always wanted exposure to companies like Alphabet, Nvidia or Microsoft but found the per-share price intimidating, fractional trading lets you:

Start with modest amounts (e.g. US$50 per stock).
Add to positions gradually as your conviction and budget grow.
Keep each stock within a target position size relative to your total portfolio (e.g. 3–5%) instead of being forced into large increments by whole shares.

This is especially useful if you’re building your first US satellite portfolio alongside CPF, SRS and local investments.

2. Core-satellite using fractional shares

A common framework for Singaporean investors is the core-satellite strategy:

Core: Broad, diversified exposures (e.g. global equity portfolios or index ETFs).
Satellite: Smaller, more focused positions (e.g. AI, semiconductors, clean energy themes).

Fractional shares Singapore access makes this easier because you can:

Keep your core in diversified portfolios or ETFs (via Syfe Core or other platforms).
Use fractional shares to take small, precise satellite positions in themes or individual names you believe in.

For instance, you might cap satellites at 10–20% of your total portfolio, then size each satellite stock at 1–2% using fractional amounts.

3. Smoother dollar-cost averaging (DCA) into US markets

If you’re investing S$200–S$500 per month into US equities:

Set a fixed monthly SGD amount for US investing.
Use a broker that supports recurring buys or manual DCA with fractional shares.
Allocate that amount across chosen stocks/ETFs in fixed percentage weights (e.g. 60% into a broad ETF, 40% into 3–4 individual stocks).

Because you’re buying in dollars, you don’t need to worry about whether a stock is at US$100 or US$500 – the platform just calculates the fraction.

4. Testing and learning with micro-positions

One underrated benefit of fractional trading is behavioural learning.

You can use micro-positions (e.g. US$10–US$20) to test:

How you react when a stock drops 20–30% in a month.
Whether you’re more comfortable with individual stock risk or broad ETFs.
How you feel about currency swings between SGD and USD.

This kind of “behavioural sandbox” is rarely emphasised in standard guides on fractional shares Singapore, but it’s extremely useful – especially if you’ve never invested through a full market cycle before.

Risks and Limitations of Fractional Shares

Like any investing tool, fractional shares come with trade-offs that Singapore investors should understand clearly.

1. Market risk is unchanged

Fractional shares do not reduce market risk:

If the underlying stock falls 50%, your fractional position also falls 50%.
Small ticket sizes can sometimes encourage over-trading, because losses feel small in dollar terms even when percentage moves are large.

Treat fractional positions with the same discipline as full shares:

Diversify across sectors and geographies.
Invest with a multi-year time horizon.
Avoid chasing short-term news with impulsive trades.

2. Voting rights and corporate actions may differ

Many brokers specify that:

Fractional holders may not have voting rights at shareholder meetings, or only whole-share portions are counted.
Fractional positions are often non-transferable between brokers.
Some corporate actions are handled via cash adjustments instead of issuing additional fractional securities.

If corporate governance and voting are important to you, consider:

Holding at least part of your stake as whole shares, or
Checking your broker’s fractional trading FAQ for specifics on voting rights and transfers.

3. Behavioural traps

Because you can invest small amounts, it’s easy to:

Build too many tiny positions that you don’t properly track.
Treat your portfolio like a “trading app” instead of a long-term wealth plan.
Overreact to short-term price moves with frequent, small trades.

To avoid this:

Define your target number of holdings.
Decide how much each position should contribute to your overall plan.
Use fractional shares primarily to fine-tune allocations, not to scatter small bets everywhere.

Quick Takeaways

Fractional shares let you buy less than one full share of a stock or ETF based on a dollar amount (e.g. US$10 instead of 1 full share).
In Singapore, fractional trading is most commonly available for US-listed stocks and ETFs, with minimum trade sizes usually starting from around US$1–US$5, depending on the broker.
Fractional shares Singapore offerings make it easier to access high-priced US stocks, diversify with small amounts, and dollar-cost average (DCA) consistently into global markets.
There are trade-offs: some platforms restrict order types, fractional positions may not carry voting rights and are often non-transferable between brokers.
Syfe Brokerage, a MAS-regulated platform, offers fractional trading on over 10,000 US stocks and ETFs from US$1, with no extra surcharge for fractional versus whole-share trades.
Fractional shares are best used as a tool to build diversified, long-term portfolios – not for short-term speculation on tiny amounts.

Are Fractional Shares Right for You?

Fractional shares have meaningfully changed how Singapore investors can access the US market. Instead of waiting months to save enough for a single expensive stock, you can start with small, deliberate amounts spread across multiple companies and ETFs. That makes it easier to get started early, diversify more, and stick to a consistent investing habit.

But fractional trading is not a magic shortcut. The same fundamentals still apply: you need a clear plan, an understanding of risk, and the discipline to stay invested through ups and downs. Fractional shares Singapore offerings simply give you a more flexible toolkit to implement that plan, especially if your starting capital is modest or your income is monthly.

If you’re comparing platforms, focus on what matters most to you: regulation, fees, product range, and overall user experience. For many investors, a MAS-regulated broker like Syfe Brokerage – with fractional trading on US stocks and ETFs from US$1 – offers a practical balance between control and convenience.

If you’re ready to move beyond leaving cash idle and start building global exposure gradually, fractional shares can be a smart first step. Start with an amount you’re comfortable with, learn the process, stay diversified, and let time and compounding do the heavy lifting.

Frequently Asked Questions (FAQs)

1. Are fractional shares legal and regulated in Singapore?

Yes. Fractional share trading is offered by brokers and banks that hold the appropriate licences from the Monetary Authority of Singapore (MAS) or operate via licensed entities overseas. The underlying securities are standard listed stocks and ETFs; the “fractional” aspect is handled at the broker and custody level. Always check that your chosen broker is properly regulated by MAS or an equivalent authority before you start.

2. What is the minimum amount to start investing in fractional shares?

Minimums vary. Some platforms let you start from US$1 per order (e.g. Syfe), while others may require a higher minimum such as US$5 (e.g. certain DBS Vickers US fractional trades). If you plan to dollar-cost average, look for a platform with low minimums and reasonable brokerage fees so small trades remain efficient.

3. How are dividends paid on fractional shares?

Dividends on fractional shares Singapore are generally paid pro-rata. If a stock pays US$1 per share and you own 0.25 share, you’ll receive US$0.25 (less any applicable withholding tax). The cash appears in your brokerage account just like dividends on whole shares. Some brokers also allow automatic dividend reinvestment, which can increase your fractional holdings over time.

4. Can fractional shares be sold?

Yes. Fractional shares can be sold the same way as whole shares. If you own 0.5 shares of a company and the price doubles, your holdings double in value as well.

5. Can I transfer my fractional shares to another broker?

In most cases, fractional shares cannot be transferred between brokers. Industry documentation and broker FAQs commonly state that fractional positions must be sold and transferred as cash if you move to another platform.

This is an important factor when deciding what you view as the best fractional share broker Singapore for your long-term strategy. Ideally, choose a platform you’re comfortable sticking with for years, not just months.